Dry Van Linehaul Rates Hit 20-Month High as Capacity Tightens

Key Details Cass Information Systems reported that truckload linehaul rates surged 5.6% year-over-year in April, marking the largest increase since August 2022. The sequential jump of 3.2% was the biggest month-to-month gain since March 2022, signaling strong pricing momentum in the dry van market. Why It Matters Capacity constraints are driving the rate increases as noncompliant drivers exit the market. J.B. Hunt noted that shipper demand has remained steady and exceeded first-quarter expectations, positioning carriers to raise rates materially over the next two years. The tightness in dry van is beginning to spread to reefer and flatbed operations. Volume Trends Shipments stabilized with a modest 0.4% monthly increase from March, marking the third consecutive month of sequential growth. Year-over-year shipments declined 4.4%, but Cass projects a potential 1.7% increase during the second half of the year as recovery takes hold. Cautions Ahead Higher diesel prices and elevated interest rates are creating headwinds for demand. The freight cycle is being led by supply-side constraints rather than demand growth, which will eventually be needed to sustain the recovery momentum.